Natural Gas Price Analysis for July 11, 2017

Natural gas prices rebounded on Monday, closing near session highs, generating an inside day which is a lower high and a higher low which reflects indecision. Warmer than normal weather is expected to cover most of the United States over the next 8-14 days, which should help buoy natural gas demand.  Support is seen near the July lows at 2.83.  Resistance is seen near the 10-day moving average at 2.975.

Momentum Remains Negative

Momentum has turned negative as the MACD (moving average convergence divergence) index has recently generated a crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The index moved from positive to negative territory confirming the sell signal. The MACD histogram is printing in negative but the trajectory has flattened slightly which reflects consolidation.